In this May 20, 2021 photo, a fuel truck driver checks the gasoline tank level at a United Oil gas station in Sunset Blvd., in Los Angeles. The average U.S. price of regular-grade gasoline jumped 8 cents over the past two weeks, to $3.10 per gallon. Industry analyst Trilby Lundberg of the Lundberg Survey said Sunday, May 23, 2021 that the increase is attributed to supply disruption from the 10-day shutdown of the Colonial Pipeline following a cyberattack, and a rise in prices for corn, a key ingredient in corn-based ethanol that must be blended by refiners into gasoline. (AP Photo/Damian Dovarganes)
Damian Dovarganes, STF / Associated PressAn estimated 2.8 million Texans will be hitting the road over the Memorial Day weekend, driving demand and prices at the pump to the largest statewide average in three years.
The statewide gas price average for regular unleaded was at $2.73 headed into the weekend, $1.10 more per gallon compared to the same time last year.
Average price in Southeast Texas is $2.68 a gallon, a $1.04 more expensive than the same time last year.
“Gasoline demand was projected to rise, and that’s exactly what’s happening, due to several factors including increasing vaccination rates and growing consumer confidence,” AAA Texas spokesperson Daniel Armbruster said in a report from the company.
The national average price for a gallon of regular unleaded is $3.04, which is the same when compared to this day last week and $1.08 more than the price per gallon at this same time last year.
U.S. gasoline demand jumped to almost 9.5 million barrels per day at the end of last week, according to federal data, which hadn’t been reached since mid-March in 2020.
Regional fuel supplies also decreased slightly, and Gulf Coast refinery utilization registered flat from the week prior.
Texans are still driving on the third-lowest priced fuel in the country, but demand and prices are still expected to remain high through the weekend and into the summer travel season compared to last year’s pandemic-impacted numbers.
“Consumption of fuel should remain strong as Memorial Day approaches and Texas is expected to see a strong rebound in the number of people traveling by automobile compared to last year’s holiday weekend,” Armbruster wrote.
Texas drivers will be paying similar prices to the Memorial Day weekend of 2018, but the national average hasn’t been at or above $3.04 since 2014.
The fuel price analysis firm GasBuddy is predicting summer demand for gas could potentially reach over 10 million barrels a day during certain parts of the summer travel season, which could break records.
The bad news is that some refiners have already cut or lost capacity due to the pandemic, which means any interruptions to refining —like from the hyper-active hurricane season predicted this year— could cause prices to rise even more.
jacob.dick@beaumontenterprise.com
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